It is undeniable that investing in meme coins is a gamble, but I believe there is reason behind the gamble, even that it’s correct because it suits them. Imagine if we are ordinary people earning $2000 a month; we have heard many stories of crypto surges and want to join, but which investment is suitable? Undoubtedly, I think it’s meme coins, and the reason is:
1. Investing $2000 in mainstream coins results in constant fluctuations, with today’s gains followed by tomorrow’s losses affecting emotions and yielding little profit, with a high likelihood of getting stuck in a losing position. It's important to know that 99% of the market cycle is spent in sideways consolidation, with real bull markets occurring only 1% of the time. Moreover, the longer the bear market lasts, the longer the bull market lasts, and vice versa. Retail investors are definitely affected by various news that swings their emotions, chasing highs and cutting losses, slowly depleting their capital.
2. True investors make money through cycles. During bear markets, they accumulate assets and wait for bull markets, and during bull markets, they sell and wait for bear markets. No one can say how long a cycle lasts, but it is certainly a matter of years. If ordinary investors buy in with a capital of $2000 and wait a few years for a double or triple return, they definitely won't be able to endure it; they came in expecting to get rich quick, and mentally they can't accept such a long and uncertain wait.
3. Investing in meme coins is different; it doesn't require much professional knowledge, and there's no need to research projects. You can buy in based on FOMO, which is very friendly for ordinary investors. Plus, the entire investment cycle is greatly shortened; results can be seen in weeks, days, or even hours. Finding meme coins with big influencers backing them or strong market makers can yield 10x or even 100x returns from a $200 investment. If they lose, they lose it all; if they win, they recover their capital without needing to navigate the middle ground. The strategy is to pursue 10 meme coins with hopes for 10x returns, and if they see gains of over 50% in a day, they won’t sell. For individuals earning a few thousand per month, making tens of thousands of RMB from a project isn’t a small amount, and the feedback is incredibly fast. An investment of $1000 may not be at risk of loss, but it can provide an opportunity to achieve dreams. This is their motto.
4. Every day, dozens or even hundreds of new 'meme coins' launch with the slogan of fair distribution, attracting hundreds of thousands of retail investors who rush into various projects daily. Many can't sleep if they don't make a trade each day; they want to hit the next big thing like BabyDoge, PEPE, LadyDoge, SHIB, FLOKI, etc. This phenomenon is alluring due to the myths of getting rich quickly, real-time high-frequency feedback, and mutual comfort and FOMO in groups, all while allowing small investments to yield big returns. It truly resonates with the reality of ordinary investors: no need to study, no hard work, low barriers to entry, quick to get started, high returns, quick results, minimal capital, potential for wealth, and there are success stories. It’s perfect for inexperienced investors.
However, the reality is that all participants' money is concentrated into the hands of a few individuals. That said, they also know that not every project is trying to take advantage of them; everyone is trying to profit. Capital manipulates and plays with your emotions, and retail investors are harvested over a much longer period than with meme coins. Meme coin investors enjoy quick returns, often with small investments multiplying many times in a day. If they get scammed, they may curse the project and quickly move on, but if it rises, they all hype it up, and there’s no time for hesitation; they have to rush into the next opportunity.
5. Whoever gains the support of the meme enthusiasts will dominate the world; whoever can cater to this group of users might become the new Web3 king. After all, both billionaires have claimed that those who master memes will rule. This group is very active and represents a significant opportunity for Web3 entrepreneurs.
6. You must never view the world in the way you think; what you think is merely your perception, not the truth of the world. Let’s inspire each other.